Dear All,
Need your expert advice.
Our company (falls under Factories Act) is redrafting its Earned Leave policy. The company has decided to keep the annual entitlement to 20 days and the maximum carry forward allowed is 30 days. Assuming an employee does not avail any leave balance, the accumulation pattern would work out as follows,
1/1/2018 : date of joining
1/1/2019 : 20 days credit (for the previous year worked)
1/1/20 : 20 days credit (for the previous year worked, total balance now 40 days)
31/12/20 : 40 days accumulated balance.
1/1/21 : 30 days revised balance (excess 10 days get lapsed or encashed)
My question is, is there any law/section/sub-section which mandates the company to compulsorily encash the excess 10 days (on 1/1/21) ? Alternatively, from a compliance perspective, would it cause any issues if the excess 10 days were to be lapsed?
Thanks in advance for your time and inputs.
Take care & Be safe.
From India
Need your expert advice.
Our company (falls under Factories Act) is redrafting its Earned Leave policy. The company has decided to keep the annual entitlement to 20 days and the maximum carry forward allowed is 30 days. Assuming an employee does not avail any leave balance, the accumulation pattern would work out as follows,
1/1/2018 : date of joining
1/1/2019 : 20 days credit (for the previous year worked)
1/1/20 : 20 days credit (for the previous year worked, total balance now 40 days)
31/12/20 : 40 days accumulated balance.
1/1/21 : 30 days revised balance (excess 10 days get lapsed or encashed)
My question is, is there any law/section/sub-section which mandates the company to compulsorily encash the excess 10 days (on 1/1/21) ? Alternatively, from a compliance perspective, would it cause any issues if the excess 10 days were to be lapsed?
Thanks in advance for your time and inputs.
Take care & Be safe.
From India
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FACTORIES ACT-leave rules.doc
Factories Act-Sec.79-Leav e.pdf